Can NRI invest in shares and debentures of Indian companies?
Yes, NRIs can invest in the new issue of shares and debentures of Indian companies by subscribing to new issue of equity/preference shares/debentures under different percentage schemes approved by RBI. As per the percentage scheme the total percentage of issue to NRIs/OCBs should not exceed the specified limit. Different percentages are specified for companies engaged in different areas: • For hospitals & hotels – specified percentage is 40 % • For companies engaged in hire purchase, leasing etc. – the specified percentage is 24%. • For industries engaged in export trading activities, housing & real estate development and Air Taxi operation – the specified percentage is 100% The amount invested and interest on that amount can be repatriated if the required conditions are fulfilled. Moreover, NRIs can also purchase both old and new shares of sick industrial units for its revival.
A.67 Yes , NRIs can invest in the new issue of shares and debentures of Indian Companies by subscribing to new issues of equity/preference shares/debentures under different percentage schemes approved by RBI. As per the percentage scheme the total percentage of issue to NRIs/ OCBs should not exceed the specified limit. Different percentages are specified for companies engaged in different areas: a)For hospitals & hotels – specified percentage is 40 % b)For companies engaged in hire purchase, leasing etc. – the specified percentage is 24%. c) For industries engaged in export trading activities, housing & real estate development and Air Taxi operation – the specified percentage is 100% The amount invested and interest on that amount can be repatriated if the required conditions are fulfilled. Moreover, NRIs can also purchase both old and new shares of sick industrial units for its revival. They can also purchase shares of Public Sector Enterprise (PSE).
